Barrilleaux v. Hero Lands Co.

244 So. 2d 613, 1971 La. App. LEXIS 6464
CourtLouisiana Court of Appeal
DecidedFebruary 8, 1971
DocketNo. 4007
StatusPublished
Cited by7 cases

This text of 244 So. 2d 613 (Barrilleaux v. Hero Lands Co.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Barrilleaux v. Hero Lands Co., 244 So. 2d 613, 1971 La. App. LEXIS 6464 (La. Ct. App. 1971).

Opinion

REDMANN, Judge.

In 1942 plaintiffs Mr. and Mrs. Lawrence J. Prejeant entered into a contract, claimed to be a bond for deed, to purchase from defendant Hero Lands Company an 11-acre tract of land. Plaintiffs now appeal from a judgment dismissing their suit to reform a 1955 act of sale to delete an exclusion of 3.67 acres of the tract.

The principal defense is that the 1955 sale was a compromise, the Prejeants having been in default on their 1942 contract payment obligations.

Independent Towing Company, Inc., which had purchased the land (by description containing the exclusion) from the Prejeants, is also a plaintiff. Their interest is only to have the Prejeants’ title to the property established, and by “plaintiffs” hereinafter we refer exclusively to the Prejeants.

By the 1942 contract defendant agreed “to sell on a rental contract basis” “and hereby rents” to plaintiffs “on a month to month basis at $7.50 per month,” the approximately 11-acre tract. Defendant agreed to give plaintiffs title to the property “as soon as rents paid on account of the same amount to the full sum of $1,000, plus interest at the rate of 6% per annum on the above amount from this date,” plus taxes and other advances. The contract further recited:

“Time is the essence of this contract; this rental contract shall remain in force as long as the regular monthly payments are made promptly each month, as provided for herein; and in the event that any monthly payment hereunder shall remain past due for the period of one (1) month from and after its due date, then this contract and right of purchase of said land under the terms of this contract and agreement shall become null and void, ipso facto, between the parties hereto, without giving or sending any notice of default, and without any necessity whatever of formally putting in default.”

La.Acts 1934, No. 169, § 7, [source of R.S. 9:2941 (1950).] defined a bond for deed as “a contract to sell real property, in which the purchase price is to be paid to the vendor in installment payments by the purchaser, for his convenience, and in which the vendor after final payment of the agreed price, covenants and agrees to deliver to the purchaser a deed and title to the property purchased.”

The 1942 contract was a bond for deed.

It could not have been cancelled by defendant, in spite of its last-quoted language of nullity on default of one month, except by compliance with Acts 1934, No. 169, § 4 (now R.S. 9:2945). That section required registry of the cancellation in the conveyance office, after first serving notice on the purchaser by registered mail that unless the required payments were made within 45 days the bond for deed would be can-celled. Leinhardt v. Marrero Land & Impr. Ass’n, Ltd., 137 So.2d 387 (La.App.1962).

Although plaintiffs were often and considerably in arrears, defendant never effected a cancellation. Not even an attempt to cancel is shown.

While the agreement therefore remained in force, the United States in 1952 initiated expropriation of a 1000-acre servitude to construct the Intracoastal Canal. One parcel of land required was 3.67 acres of [615]*615the 11-acre tract, to which title was in defendant subject to plaintiffs’ bond for deed. In connection with the expropriation, defendant on March 15, 1954 adopted a resolution reciting its ownership and plaintiffs’ contract to purchase, and that “Prejeant, prospective purchaser” was “desirous of settling the controversy with the United States Government over the above described property for $500.00 cash and wishes to sell and transfer the above described property, or the rights therein, to the United States for said price; and Whereas such action and price are agreeable to this company” and Prejeant wanted the price to be paid to defendant “to further and facilitate the final execution of said purchase contract” (emphasis added). The resolution authorized the granting of the servitude by defendant to the United States.

On August 10, 1954, a stipulation in the pending expropriation suit was made between the United States and the “defendants” the Prejeants and Hero Lands Company, that the United States should have the desired servitude for $500.00 as just compensation. There are expressions in that stipulation which are suggestive of compromise. There our plaintiffs and defendant “have amicably agreed that the beneficial interest” of plaintiffs was $500, and that the Court was authorized to decree disbursement of $500 to our plaintiffs “in full satisfaction of their beneficial interest”. But we believe that language must be understood as settling the dispute between the United States and parties in interest in the land. Defendant’s resolution of March 15, 1954 shows there was no dispute of any kind between plaintiffs and defendant.

The payment to defendant of the net proceeds of the $500 expropriation compensation brought plaintiffs ahead of the 1942 contract schedule on payment. By the time the 1955 act of sale was passed, plaintiffs had paid off their debt in advance of contract schedule.

Under the 1942 contract, plaintiffs were therefore entitled to the entire 11-acre tract, although subject to the expropriated servitude over the 3.67-acre portion.

Yet the 1955 act of sale described the property sold as the 11-acre tract,

“SAVE AND EXCEPT THEREFROM and subject to any rights which have been or may be acquired by the United States Government by virtue of or because of condemnation proceedings presently pending in the U. S. District Court for the Eastern District of Louisiana entitled ‘United States of America vs 1000 Acres of Land, more or less, in Plaque-mines Parish, Louisiana’ No. 3362, Civil, in which the above described property is involved.
“SAVE AND EXCEPT PARTICULARLY THEREFROM the following described property over which a perpetual easement and servitude was acquired by the U. S. Government in the above proceedings, to-wit:
“A certain tract of land lying and being in the Parish of Plaquemines, Louisiana, in Section 93, Township 14 South, Range 24 East, and being all that rear portion of Lot R of the Concord Canal Subdivision (Bayou Barataría Section) lying within the channel right of way limits of the Concord Canal Subdivision and contains an area of 3.67 acres, more or less, and is bounded northerly by land of Frank Spano, east by land of Angelo Casio, southerly by Railroad Canal, and Westerly by other land of Lawrence J. Prejeant and L. B. Hayes, and is more particularly shown on a map prepared by the Corps of Engineers, U. S. Army, New Orleans District, dated January 1946.”
However, the Act also recited
“THIS SALE IS MADE AND ACCEPTED, for and in consideration of the price and sum of one thousand and no/100 ($1,000.00) dollars, as per rental contract July 1st, 1942 * *

Thus the act appears to be in error, either in the exclusion of part of the land [616]*616covered by the earlier contract or in reciting that the sale is made “as per” the earlier contract. If, as defendant claims, the exclusion was the result of a compromise, the act would more appropriately have recited “in compromise of” rather than “as per” the earlier contract.

Defendant’s theory of compromise is that the earlier contract had, by its terms, become null by default in payments. As a matter of law, as above noted, this could not occur (now R.S. 9:2945).

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Cite This Page — Counsel Stack

Bluebook (online)
244 So. 2d 613, 1971 La. App. LEXIS 6464, Counsel Stack Legal Research, https://law.counselstack.com/opinion/barrilleaux-v-hero-lands-co-lactapp-1971.